Cummins Inc. (NYSE:CMI) Receives Average Recommendation of "Hold" from Analysts

Cummins Inc. (NYSE:CMI - Get Free Report) has received a consensus rating of "Hold" from the eleven research firms that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell rating, four have given a hold rating and five have assigned a buy rating to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $271.64.

A number of equities analysts have weighed in on CMI shares. StockNews.com downgraded shares of Cummins from a "buy" rating to a "hold" rating in a research note on Monday, March 4th. JPMorgan Chase & Co. boosted their target price on shares of Cummins from $245.00 to $275.00 and gave the stock an "underweight" rating in a research note on Monday, March 25th. Truist Financial started coverage on shares of Cummins in a research note on Thursday, March 14th. They issued a "hold" rating and a $303.00 target price for the company. Bank of America downgraded shares of Cummins from a "neutral" rating to an "underperform" rating and dropped their target price for the stock from $243.00 to $225.00 in a research note on Friday, January 19th. Finally, Morgan Stanley started coverage on shares of Cummins in a research report on Monday, January 8th. They set an "overweight" rating and a $278.00 price target for the company.

Cummins Price Performance

CMI stock traded up $1.38 during trading on Tuesday, hitting $301.73. 863,624 shares of the stock traded hands, compared to its average volume of 3,028,755. Cummins has a one year low of $203.18 and a one year high of $304.20. The stock has a market cap of $41.26 billion, a price-to-earnings ratio of 58.25, a P/E/G ratio of 2.05 and a beta of 1.04. The company has a 50 day simple moving average of $272.35 and a 200 day simple moving average of $244.90. The company has a current ratio of 1.18, a quick ratio of 0.74 and a debt-to-equity ratio of 0.48.

Cummins (NYSE:CMI - Get Free Report) last announced its quarterly earnings results on Tuesday, February 6th. The company reported $4.14 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.27). Cummins had a net margin of 2.16% and a return on equity of 25.68%. The firm had revenue of $8.54 billion for the quarter, compared to the consensus estimate of $8.10 billion. During the same period in the prior year, the business earned $4.52 earnings per share. The company's revenue for the quarter was up 9.9% on a year-over-year basis. Equities analysts expect that Cummins will post 18.29 EPS for the current fiscal year.

Cummins Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Friday, February 23rd were issued a dividend of $1.68 per share. This represents a $6.72 dividend on an annualized basis and a yield of 2.23%. The ex-dividend date was Thursday, February 22nd. Cummins's dividend payout ratio is currently 129.73%.

Insider Activity at Cummins

In related news, CEO Jennifer Rumsey sold 739 shares of the business's stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $266.91, for a total transaction of $197,246.49. Following the completion of the transaction, the chief executive officer now owns 2,698 shares in the company, valued at $720,123.18. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other news, CEO Jennifer Rumsey sold 739 shares of the company's stock in a transaction that occurred on Friday, February 16th. The shares were sold at an average price of $266.91, for a total value of $197,246.49. Following the completion of the transaction, the chief executive officer now owns 2,698 shares in the company, valued at $720,123.18. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Sharon R. Barner sold 2,100 shares of the company's stock in a transaction that occurred on Wednesday, February 28th. The shares were sold at an average price of $271.29, for a total transaction of $569,709.00. Following the completion of the transaction, the vice president now owns 16,899 shares of the company's stock, valued at approximately $4,584,529.71. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 51,289 shares of company stock worth $13,576,838. 1.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Massmutual Trust Co. FSB ADV boosted its holdings in shares of Cummins by 9.5% in the first quarter. Massmutual Trust Co. FSB ADV now owns 11,287 shares of the company's stock valued at $3,326,000 after buying an additional 976 shares during the period. Beese Fulmer Investment Management Inc. lifted its position in shares of Cummins by 1.7% in the first quarter. Beese Fulmer Investment Management Inc. now owns 41,902 shares of the company's stock worth $12,346,000 after purchasing an additional 714 shares in the last quarter. GAMMA Investing LLC lifted its position in shares of Cummins by 16.7% in the first quarter. GAMMA Investing LLC now owns 1,218 shares of the company's stock worth $359,000 after purchasing an additional 174 shares in the last quarter. CWM LLC lifted its position in shares of Cummins by 7.0% in the first quarter. CWM LLC now owns 9,058 shares of the company's stock worth $2,669,000 after purchasing an additional 592 shares in the last quarter. Finally, Moody National Bank Trust Division lifted its position in shares of Cummins by 1.3% in the first quarter. Moody National Bank Trust Division now owns 4,746 shares of the company's stock worth $1,398,000 after purchasing an additional 59 shares in the last quarter. Institutional investors and hedge funds own 83.46% of the company's stock.

Cummins Company Profile

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.